Looking at your Insurance Rates in the Time of Covid-19? Don’t Forget to Get Adequate Underinsured/Uninsured Motorist Coverage

June 22, 2007

A client may discover the value of having UM/UIM coverage when the at-fault driver is underinsured or even worse, uninsured.  Ironically, UM/UIM insurance is often the most inexpensive form of insurance coverage.  In the era of COVID-19, many families are analyzing and adjusting their auto insurance coverage.  It is time to ensure you have appropriate UM/UIM coverage.

A SOBERING EXAMPLE

If you follow this advice, you will protect yourself and your family from going uncompensated when an uninsured or underinsured driver causes you harm.  Consider the following example: A client we recently consulted with was rendered totally disabled when she was hit by an at-fault driver.  Unfortunately, the person who caused the accident only had a $15,000 insurance, and no significant personal assets, covering only a fraction of the client’s medical expenses, and no compensation for future medical and attendant care needs, loss of earnings, pain and suffering, and emotional distress.

UNINSURED MOTORIST COVERAGE TO THE RESCUE!

Fortunately, the client had uninsured/underinsured motorist coverage with limits of $250,000 per accident, and an “umbrella” policy of an additional $1,000,000 of coverage.  This was insurance she had bought from her own insurance company to protect herself.  The result was the ability to collect the full policy limits of $1,250,000 from her own insurance company, which prevented total financial devastation, which would have occurred without underinsured motorist coverage.

BE ON THE LOOKOUT TO MAKE SURE “U” ARE COVERED!

Unfortunately, all too often we consult with clients after catastrophic accidents that do not have uninsured/underinsured motorist coverage (or minimal insurance coverage).  To remedy this problem, we recommend that all consumers carefully review their insurance policy coverage to ensure they have adequate policy limits in the event of an accident caused by an uninsured/underinsured motorist.  You can verify coverage by contacting your insurance agent, and/or review your insurance policy “Declarations” page to determine if you have “Coverage U” and the amount.  Keep in mind the minimum limits allowable by law are quite frequently not even close to sufficiently cover the medical and economic loss associated with moderate injury accidents.  Unfortunately, many insurance companies and their agents fail to bring low policy amounts to the attention of their insureds — which can result in consumers who are under- protected against the devastating losses caused by irresponsible uninsured/underinsured drivers.

If you have questions or concerns about your insurance, feel free to give us a call.  Or, contact your insurance agent to assure you have adequate underinsured/uninsured motorist insurance coverages in place to protect you and your loved ones.

Contact Aitken * Aitken * Cohn today to learn more.